Reducing Inequities Among Worker-Owned Cooperatives: A Proposal

Robin Hahnel ()
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Robin Hahnel: Department of Economics, American University. Center for Sustainable Processes and Practices, Portland State University. 3716 SE Woodstock Blvd, Portland, OR 97202, USA.

Eastern Economic Journal, 2009, vol. 35, issue 2, 174-189

Abstract: When worker-owned cooperatives trade goods and services at market prices they tend to reproduce differences in payments to members of more advantaged co-ops compared to members of less advantaged co-ops. Members of worker-owned cooperatives who believe this violates “cooperative principles” requiring that co-op members be compensated fairly could reduce inequities among co-ops by forming a cooperative mutual aid association which adopts redistributive pricing rules. This article proposes redistributive pricing rules that (1) reduce inequities among co-ops and (2) leave members of more advantaged co-ops absolutely better off, but (3) do not introduce inefficiencies in the distribution of capital among co-ops. Eastern Economic Journal (2009) 35, 174–189. doi:10.1057/eej.2008.10

Date: 2009
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